1. (1) Subject to the following section and to the provisions of Section 7-205 on fungible goods, a holder to whom a negotiable document of title has been duly negotiated acquires thereby:

   1. (a) title to the document;
   2. (b) title to the goods;
   3. (c) all rights accruing under the law of agency or estoppel, including rights to goods delivered to the bailee after the document was issued; and
   4. (d) the direct obligation of the issuer to hold or deliver the goods according to the terms of the document free of any defense or claim by him except those arising under the terms of the document or under this article. In the case of a delivery order the bailee's obligation accrues only upon acceptance and the obligation acquired by the holder is that the issuer and any endorser will procure the acceptance of the bailee.

2. (2) Subject to the following section, title and rights so acquired are not defeated by any stoppage of the goods represented by the document or by surrender of such goods by the bailee, and are not impaired even though the negotiation or any prior negotiation constituted a breach of duty or even though any person has been deprived of possession of the document by misrepresentation, fraud, accident, mistake, duress, loss, theft or conversion, or even though a previous sale or other transfer of the goods or document has been made to a third person.

   Uniform Commercial Code Comment

   The Uniform Commercial Code was developed by The American Law Institute and the National Conference of Commissioners on Uniform State Laws. These organizations hold the copyright on the official comments to the Uniform Commercial Code. The Oklahoma Supreme Court attempted but was unable to obtain permission to reproduce the Official Comments here. For more information on these organizations, click on the links above. To email your comments, click on one of the links below.

   The American Law Institute
   4025 Chestnut Street
   Philadelphia, PA 19104
   Phone: (215) 243-1600
   FAX: (215) 243-1664
   Email

   National Conference of Commissioners on Uniform State Laws
   676 N. St. Clair Street, Suite 1700
   Chicago, Illinois 60611
   (312) 915-0195
   Email

Laws 1961, p. 149, § 7-502.